TANZANIA is leading the East African bloc in terms of infrastructural projects in terms of value.
The country, second
largest economy in the EAC, according to the...
Africa Construction Trends
Report 2019, registers a total project value of 60.3 billion US dollars
last year.
Tanzania total
share of projects stands at 41.2 per cent being the largest potion in
East Africa's total investment value as per consultancy firm Deloitte
report issued last month.
The projects that
upped the country position is the new Likong'o-Mchinga LNG plant, worth
30billion US dollars which also is one of the most valuable project in
the region.
The LNG once
completed, the plant is expected to contribute about 7.0 per cent
towards the country's economic growth. Also, Tanzania is tied with Kenya
in terms of infrastructure projects, both recording 51 projects in
2019. Regionally, Kenya was behind Tanzania accounting for only 24.6 per
cent or 36 billion US dollars of the region's total project value.
Overall the total
number of projects in East Africa rose by 30.9 per cent between 2018 and
2019, with the region currently recording 182 projects under
construction.
Kenya's rail
project is expected to contribute towards boosting trading activities in
Kenya, thus, placing the country at the centre of East Africa's rail
network.
Now African
countries; Burundi, Comoros, Djibouti, Eritrea, Ethiopia, Kenya, Rwanda,
Seychelles, Somalia, Tanzania and Uganda account for 40.3 per cent of
projects across the continent and 29.5 per cent of the value.
The total value of
construction projects had increased by 67.6 per cent between 2018 and
2019, from 87 billion US dollars to 146 billion US dollars. The increase
stemmed from investments in large infrastructure.
The transport
sector continues to take the lead within the sectoral break down by
value. The sector accounted for 30 per cent (44 billion US dollars) of
the region's total projects by value, followed by oil and gas (27.5 per
cent) and then the energy and power (20.9 per cent) sectors.
East Africa has
encountered several transport infrastructure challenges in the past
years, thus making transport investments a priority to ensure a reliable
transportation network.
As a result, the
sector recorded the highest number of projects--69 projects out of 182,
followed by the energy and power sector with 40 projects, 22 per cent
and Real Estate with 35 projects 19.2 per cent.
The high number of
transport projects came from investments in rail, road and airport
projects. Projects in East Africa are mainly owned by government
accounting for 79.1 per cent, while private domestic companies own 6.6
per cent.
East Africa relies
on external funding for most infrastructure projects. The region's
project funding is dominated by China-20.9 per cent; down from 25.9 per
cent last year-while governments account for 13.7 per cent of total
funding
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